In real estate funds (FIIs)a Warren continues to see opportunities in the bricks and good quality credits. This explains why the brokerage and investment manager kept its recommended portfolio intact, with a relevant portion allocated to bricks, for July.
Warren points out that, even in a challenging month for the class, its portfolio dropped slightly less than the Real Estate Funds Index (Ifix) in June, “evidencing that the choice of theses has fulfilled its role, even in the most troubled scenarios”.
“The Fed’s unexpected rate hike caused major brick segments to undergo a sharp repricing. However, Brazil is ahead of the rest of the world and close to the end of the cycle of high Selic rate, which tends to benefit the properties. That said, we are looking for a portfolio that can survive the short term to take on more risk in the near future”, says the broker.
Warren remains optimistic with the shopping malls, based on positive sales data in the second quarter of the year. About slabsthe broker draws attention to the segment discount due to market uncertainties about how companies will return to occupy their offices.
“We still see the values per square meter heavily discounted on the stock exchange and disconnected from the material reality of the assets that the funds hold. The segment fell sharply in June (-3.8%), but we remain comfortable with our allocation, and the recent drop may even open up interesting opportunities”, he comments.
In the slab segment, Warren focuses on premium assets, AAA portfolios, with in-demand locations and rent correction capability.
Warren’s FII portfolio ended the last month with losses of 0.86%, compared to a 0.88% drop in Ifix.
FoFs urge caution
While the preference is for good quality bricks and credits, Warren is keeping some distance from funds of funds (FoFs) and Cris more risky.
Regarding FoFs, Warren currently does not have any segment assets in the portfolio.
The broker highlights that this class usually has a good performance during the “periods of bonanza”, generating relevant capital gains and fattening its dividends. However, the market still does not have as many opportunities for carrying out short operations (generating a gain in the fall of the asset).
“Therefore, FoFs have few resources to defend themselves against a generalized downturn in the real estate segment”, explains the broker.
Check out Warren’s recommended FIIs for July:
| real estate fund | ticker | Weight |
|---|---|---|
| Real Interest Vectis | VCJR11 | 10% |
| CSHG Urban Income | HGRU11 | 10% |
| HSI Malls | HSML11 | 7.50% |
| JS Real Estate | JSRE11 | 10% |
| Kinea Real Estate Income | KNCR11 | 10% |
| Mauá Capital Real Estate Receivables | MCCI11 | 5% |
| VBI Prime Properties | PVBI11 | 10% |
| Homeland Logistics | PATL11 | 5% |
| XP Malls | XPML11 | 7.50% |
| Flagship Securities II | CPTS11 | 5% |
| Vinci Offices | VINO11 | 5% |
| RBR High Grade Income | RBRR11 | 5% |
| Rio Bravo Renda Logística | SDIL11 | 5% |
| Green Towers | GTWR11 | 5% |
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
